Design News 2011 Salary Survey: Best News in Years

If you're a glass-half-full optimist, our 2011 salary survey may make you positively giddy. True, the US economy remains far from a full-blown rebound. Yet the hopeful projections we've heard lately from industry executives is supported by a gathering swell of good news in engineers' compensation packages.

Paychecks seem positively unleashed, when you consider that our respondents toted up their first increase in average base salary in two years. Annual earnings of $93,465 marked a 4.3 percent bump from the $89,597 average reported last year. (The latter number was essentially flat versus 2009.) More good news: 65 percent of respondents saw their base annual salary jump, compared to 40 percent in last year's survey. Only 4 percent took a haircut, as opposed to 9 percent in 2010.

The bonus picture looked upbeat, too -- that perk averaged $9,440. However, keep in mind that while 20 percent of you received bonuses in the $9,000 to $50,000 range, 41 percent of working engineers received no additional compensation above base salary at all.

Some nuances to those numbers: Average salaries varied regionally, ranging from a high of $109,853 in the mountain states -- closely followed by $107,407 in California, Arizona, and Nevada -- to a low of $86,076 in the Southeast region. Pay also fluctuated according to industry, with industrial controls and defense in the top tier, followed by a tight grouping of medical test equipment, consumer electronics, and automotive.

Interestingly, while career satisfaction remains high -- 52 percent of you are very or extremely satisfied with design engineering, and 78 percent would recommend the profession to your children -- the relative economic bounty of the past year hasn't translated into more confidence about the immediate future.

Twenty-five percent of you are either extremely or very concerned about job security, with another 40 percent admitting to some apprehension. "Our company is replacing US engineers with 'best cost country' engineers," one respondent said.

Yes, I agree it is good news. Data shows engineering to be a strong career choice moving forward. While I have no hard data in this area, it seems like many companies are also starting to advertise engineering openings more frequently and aggressively.

However, one trend I also continue to see is the increasing development of 'best cost country' engineers. Engineers are cautious and many continue to watch this trend closely - as it will affect salary structures in the future.

This is good news. It will be a good day when more company executives acknowledge it. There are still a number of companies (one I know of with record profits for the last few years) who are telling there employees they are lucky to have a job and not to expect a raise this year.

This survey shows that engineers have a lot to be thankful for. We are fortunate in many ways. For one thing, we are paid good money to do work that we find interesting and challenging. How many people can say that?

I have met some engineers who seem bitter; envious of those who are better off than them (doctors, lawyers, and professional athletes, for example), and scornful of those who are worse off than them ("lazy," "unproductive," etc.). These engineers constantly complain about their workloads, the various stresses and frustrations of the workplace, and how everything in the world is going to hell in a handbasket. They seem to lose sight of just how lucky they actually are. Not only is this attitude bad for productivity and morale, it's bad for their own health.

I'm thankful for the chain of events in my life which led me into an engineering career; thankful for the family, friends, and co-workers who supported and encouraged me through engineering school; and thankful for the fact that I am able to provide my family with a reasonable standard of living while doing work I enjoy. What else could I ask for?

Hopefully, engineers who see how fortunate they are will be inspired to give back, whether by tutoring and mentoring students, getting involved with organizations like Engineers Without Borders, or other activities. This is a good way to help pass on the good fortune which we have received.

This is particularly good news given that unit labor costs are not going up. Just this past month, they've gone down. So the gains in engineering salaries are are rising as companies -- and government entities -- are pushing their costs down. Is this a matter of supply and demand?

An average of $93,465 is really quite an impressive figure, when you consider that 20% of the country makes less than $91,202. It's especially impressive when you consider that the $91,202 number I just quoted is a household number, not an individual salary number. It's probably safe to assume that many of the engineers earning in the $93,465 range have other income in their households.

It is indeed heartening to see positive economic news given all that's gone on these last few weeks. It does seem like many of the sectors catering to the engineering market (in my world, CAD and PLM vendors) are reporting strong financials indiciating that companies are investing in tools to foster innovation and engineering productivity.

It's also interesting that so many of the respondents have been in the same job or company for many years. As unemployment remains a key issue and one of the biggest drags on the economy, did the survey garnter any feedback on layoffs or even respondents' ability to find a new job if necessary or desired?

Focus on Fundamentals consists of 45-minute on-line classes that cover a host of technologies. You learn without leaving the comfort of your desk. All classes are taught by subject-matter experts and all are archived. So if you can't attend live, attend at your convenience.